New Guidelines Unveiled for India's Startup Funding Scheme

The government has released new guidelines for the second phase of a Rs 10,000 crore fund scheme aimed at boosting startup funding. This initiative focuses on efficient capital flow, leveraging support from SEBI-registered funds to invest in DPIIT-approved startups. Key figures like SIDBI will oversee execution and monitoring.

The Indian government has announced guidelines for the second phase of a Rs 10,000 crore fund of funds scheme designed to support startups, according to the Commerce and Industry Ministry. The guidelines are crafted to enhance capital flow efficiency within the startup ecosystem.

The scheme will operate via investments through SEBI-registered Category I and II Alternative Investment Funds (AIFs), targeting DPIIT-recognized startups. The program aims for disciplined capital allocation and increased private investment involvement. SIDBI has been named as the initial Implementation Agency, responsible for executing a structured AIF selection process.

To address ecosystem gaps, the guidelines segment AIFs into various focus areas, including deep tech funds, micro venture capital, and innovative manufacturing sectors. Implementation will be evaluated by a committee of industry leaders and experts, ensuring proposals align with strategic investment goals.